Elizabeth Kumaru, Senior Manager – Funds Management
Investments in infrastructure assets play an important role in QSuper’s portfolio. As we’ve touched on before, the attraction of infrastructure within a diversified, multi-asset class portfolio is that these assets can provide long-term stable cash flows that offer genuine diversity to listed equity markets.
Over the past few years our Investment team has increased QSuper’s level of investment in infrastructure assets, with the aim of achieving the long-term investment strategy set by the QSuper Board. Currently we have $5.8 billion invested in infrastructure assets globally which form part of each of our Ready Made multi-asset class options (Balanced, Aggressive, Moderate and Lifetime).
In this post, we take a closer look at our investment in Edinburgh Airport. As Scotland’s number one airport, with a diverse selection of routes and airlines and a solid customer base, Edinburgh Airport is considered a particularly attractive infrastructure investment.
Edinburgh is the second most popular tourist destination in the UK after London, with a good proportion of tourists arriving by plane. The city hosts several famous events such as the Edinburgh Festival, Edinburgh Tattoo and Murrayfield. There’s also plenty of action on the departure front, as being the political, cultural and financial hub of Scotland, Edinburgh has a high proportion of wealthy inhabitants who like to travel.
Yet importantly, Edinburgh Airport has lots of potential for growth, which provides strong opportunities to generate good returns for you, our members. Since owning Edinburgh Airport there have been several improvements to its operations including check-in/security process improvements, enhancements to car parking facilities and redevelopment of the retail space. In January this year Edinburgh Airport announced continued growth resulting in further new jobs being created at the airport.
Because of its location, customer base, and operational improvements, it’s expected that over the coming years it will continue to attract new airlines and develop new routes, increasing passenger numbers and making it even more profitable.
It is these types of investments that we continue to look to acquire in the future in order to help to deliver strong, stable returns for your retirement portfolios. If you have any questions about this asset, please let me know in the comments section below.
The views of the author and those who provide the responses to comments posted on this blog are not necessarily the views of the QSuper Board. We’ve put this information together as general information only and you should get professional advice before relying on this information.
Past performance is not a reliable indicator of future performance. Each of our investment options has a different objective, risk profile, and asset allocation.
Senior Manager, Funds Management
Elizabeth directs QSuper’s investments with external service providers including investment managers, funds of funds and consultants. Elizabeth and her team are responsible for implementing investment policy decisions and structuring potential investments.